Average cost of car insurance in Indiana for 2023

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How much is car insurance in Indiana?

To answer the question, “How much is car insurance in Indiana,” we collected and analyzed average rate data from Quadrant Information Services. Based on our analysis, the average car insurance premium in Indiana is $1,295 per year for full coverage and $327 for minimum coverage. However, car insurance rates can vary based on factors like ZIP code, coverage options, credit-based insurance score, claim history, driving record, and age, among others, so it’s important to shop around for the best fit for your unique profile. 

Indiana car insurance rates by city

Your city is one of the criteria that may impact your Indiana car insurance rates, as each ZIP code has its own statistical likelihood of accidents, other incidents and the average cost of parts and repairs, among other factors. In general, bigger cities often have more expensive auto insurance premiums. Cities with larger populations have more drivers, which can increase the risk of accidents or other incidents on the road. Vehicle thefts might also be more common in larger cities. Based on our comparison of rate data, drivers in South Bend pay the lowest average car insurance rates in Indiana. The city with the most expensive average rates in Indiana is Indianapolis.

Average car insurance costs by age and gender in Indiana

Age and gender are two factors that may affect car insurance rates in Indiana. Generally speaking, young drivers who are recently licensed pay the highest car insurance rates, as they are at a statistically higher likelihood of accidents due to a lack of experience behind the wheel. Additionally, male drivers tend to pay higher rates than female drivers because of their higher accident frequency and severity.

However, not all states use age and gender as car insurance rating factors. In Hawaii and Massachusetts, car insurance companies cannot consider your age when calculating car insurance rates. In California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania, gender is not a contributing factor to car insurance premiums. 

The following tables show the average rates in Indiana by gender for drivers on their own policy, and the average rates for young drivers on their parent’s policy.

Cost considerations for young drivers in Indiana

Average car insurance costs show that rates are generally the highest for young drivers due to having less experience with driving, which results in insurance companies charging higher rates to offset the risk of insuring them. However, premiums can vary significantly depending on whether a young driver has their own car insurance policy or is insured on their parent’s policy. While drivers can’t purchase their own car insurance policy until they turn 18, it’s almost always cheaper for young drivers to be on their parent’s policy, according to our analysis of average rate data.

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in Indiana?

Your driving record has one of the biggest impacts on your car insurance rate. Drivers with a history of speeding ticket convictions, at-fault accidents and DUI or OWI convictions often pay much higher rates for car insurance coverage. The table below outlines the average car insurance rates in Indiana for certain violations and how these rates compare to the average rate for a clean record.

Car insurance rates in Indiana by credit tier

Car insurance companies are allowed to use credit-based insurance scores to help determine car insurance rates in every state except California, Hawaii, Massachusetts and Michigan. That means car insurance companies in Indiana may check your credit when calculating your rate and base your premiums, in part, on your payment and credit history. Based on our analysis, drivers with poor credit in Indiana pay the highest average rates, while drivers with excellent credit pay the lowest average rates.

Indiana car insurance rates by vehicle type

When you apply for a car insurance policy, you will be asked to provide the make and model of your vehicle and/or the VIN. The type of car you have will generally impact the cost of your insurance. To give you an idea of what you might pay for insurance based on your vehicle type, we’ve included average rates for several popular cars in the table below.

How to save on car insurance in Indiana

Car insurance rates are different for every driver, and some people pay higher rates than others. Fortunately, there are many ways to potentially get a lower premium. Here are a few suggestions for getting cheaper car insurance in Indiana:

• Look for discounts: Many car insurance companies in Indiana offer discounts. Some of the most common discounts include savings for good students, claim-free drivers, taking a defensive driver course and insuring a vehicle with certain safety features.
• Improve your credit score: In Indiana, car insurance companies can use your credit-based insurance score to determine your rate. Raising your credit score may help you save money on your policy. 
• Raise your deductibles: Some car insurance coverage options, like collision insurance, require you to pay a deductible when you have a claim. Choosing a higher deductible can help lower your monthly rate, but will cost you more out of pocket if you file a claim for a covered incident. 
• Shop around: Comparing car insurance quotes from a few companies can help you find the most affordable rate for your situation. You can also get new quotes from other car insurance companies every year or after a major event, like getting into an accident, to compare your options and ensure your rate remains low. 
• Pay in full: Most car insurance companies in Indiana will offer a discount on your car insurance premium if you pay upfront and in full for your six- or 12-month policy premium. You might also be able to get a discount for enrolling in automatic payments.

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